In the world of stock market trading, having a single demat account is a standard practice. But for serious investors and traders, a secondary demat account can be a strategic asset. Opening a secondary account with Zerodha, a leading discount broker in India, can offer a range of benefits, from better portfolio management to separating long-term investments from short-term trades. This detailed guide will walk you through the process of opening a secondary demat account with Zerodha, highlighting the key reasons why it might be the right move for you.
Having multiple demat accounts allows for a more organized and disciplined approach to your trading and investing activities. For example, you can use one account for your long-term, wealth-building portfolio, and the other for your speculative, intraday, and F&O trading. This separation helps in clearly tracking the performance of different strategies, managing risk more effectively, and avoiding the emotional decisions that often come with mixing your investments. Let’s explore how you can easily set up a secondary demat account with Zerodha.
How to Open a Secondary Demat Account in Zerodha Online
Zerodha makes the process of opening a secondary demat account straightforward and completely online. The process is similar to opening your first account but is tailored for existing clients. You’ll need to use your Aadhaar and PAN details for verification, but the rest of the information is pre-filled, saving you time and effort.
The entire process is digital, from providing your personal details to e-signing the documents. This means you can complete the application from the comfort of your home, without the need for any physical paperwork. Once you’ve submitted the application, Zerodha’s team will verify your details, and your new secondary demat account will be activated, ready for you to use.
Step 1: Access the Demat Account Opening Page
- First, log in to your Zerodha account on your mobile app.
- Tap on the Profile icon located at the bottom of your screen.
- From the “Account” section, select the Profile option.
- Next, tap on Manage account.
- On the console screen, tap the three-line menu icon at the top left and select the Demat option.
Step 2: Initiate Secondary Demat Account Opening
- Under the “Demat” section, you will see two tabs: “Primary” and “Secondary.” Tap on the Secondary option. A brief description of a secondary demat account will appear. Tap the Continue button to proceed.
- You will be redirected to the account opening form, which is largely pre-filled with your existing information. Review all the pre-filled personal and contact details, and then tap on the Confirm button to proceed.
Step 3: Complete Nominee Details and IPV
You will be prompted to enter your nominee details, including the nominee’s PAN. Enter the required information and tap Continue.
Next, you’ll perform an In-Person Verification (IPV). Allow camera access on your browser. A unique 4-digit code will be displayed on your screen. Write this code on a blank piece of paper. Hold the paper with the code in front of your camera and tap Capture to take a photo.
Step 4: eSign and Finalize
- After the IPV, you’ll be taken to the e-sign page. Tap the Sign Now button to begin the e-signing process.
- You will be redirected to the NSDL eSign page. Enter your Aadhaar card number. Check the box to agree to the terms and conditions and tap Get OTP.
- Enter the OTP sent to your Aadhaar-linked mobile number to complete the e-signing.
- A confirmation message will appear, indicating that the e-sign has been successful. You will also receive an email confirming the submission of your application.
Your secondary demat account will be opened within 48 hours. You can access your secondary account from your kite App and web option.
Final Words
Opening a secondary demat account with Zerodha is an excellent way to organize your investments and improve your trading strategy. By segregating your long-term and short-term holdings, you can gain a clearer perspective on your portfolio’s performance and make more informed decisions. The online process is seamless and secure, ensuring a hassle-free experience from start to finish. Once your account is active, you can begin executing your new, more disciplined investment strategy.
FAQ
Q1: Why should I open a secondary demat account?
A: A secondary demat account helps you segregate your investment strategies, such as separating long-term investments from short-term trades. This improves portfolio management, helps track performance, and facilitates better risk management.
Q2: Is the process of opening a secondary demat account with Zerodha completely online?
A: Yes, the entire process, including document submission, in-person verification (IPV), and e-signing, is done online through the Zerodha platform.
Q3: What documents are required to open a secondary demat account?
A: Since you are an existing Zerodha client, most of your details are already on file. You will need your Aadhaar card for the e-sign process and your nominee’s PAN for verification.
Q4: How long does it take for the secondary demat account to be activated?
A: After you’ve successfully completed the online application and e-signing, Zerodha’s team will verify your details. The account is typically activated within a few business days. You will receive an email notification once it’s ready.